In a retail environment, accuracy of inventory can be important to an effective and efficient supply chain. For example, inventory records are used in forecasting, ordering and replenishment of products. Traditionally, actual and accurate knowledge of a retailers' on hand inventory of products is difficult to obtain. Many factors can throw off the true on hand inventory, such as errors in products shipped/received, losses, data errors, improperly processed product returns, etc. Thus, retailers only have accurate information as to what inventory the system thinks is on hand, which is referred to as perpetual inventory (PI).
Overstated PI with respect to an inventory item is a condition where the perpetual inventory is a higher number than the actual number of units on hand for the item. In other words, the PI is overstated since there is less actual inventory than indicated by the system. Overstated PI may be referred to as phantom inventory and can have a negative effect on the retailer. One serious consequence of overstated PI is that items for sale may become out of stock without regular replenishment or may even not reach a replenishment point, resulting in missed product sales.
Elements in the figures are illustrated for simplicity and clarity and have not necessarily been drawn to scale. For example, the dimensions and/or relative positioning of some of the elements in the figures may be exaggerated relative to other elements to help to improve understanding of various embodiments of the present invention. Also, common but well-understood elements that are useful or necessary in a commercially feasible embodiment are often not depicted in order to facilitate a less obstructed view of these various embodiments of the present invention. Certain actions and/or steps may be described or depicted in a particular order of occurrence while those skilled in the art will understand that such specificity with respect to sequence is not actually required. The terms and expressions used herein have the ordinary technical meaning as is accorded to such terms and expressions by persons skilled in the technical field as set forth above except where different specific meanings have otherwise been set forth herein.